Brookfield Infrastructure Partners LP Q1 FY2024 earnings call

• Financial and Operating Results: FFO of $615 million (+11% y-o-y); new investments in data centers showing momentum.
• Capital Recycling: Secured $1.2 billion in proceeds, including selling French fiber platform (EUR 1B+ EV) and Brazilian gas transmission refinancing ($1.6B financing).
• Acquisitions: Incremental stake in Brazilian rail/logistics provider ($365M), follow-on acquisition of Indian telecom towers ($1B equity consideration).
• Outlook: Long-term positive economic outlook; infrastructure assets attractive to investors; data sector growth driven by digitalization.

Utilities: Generated FFO of $190 million (8% organic growth after adjusting for asset sales). Transport: FFO was $302 million (57% increase due to Triton acquisition; balance grew 10% from inflationary tariff increases and higher volumes). Midstream: FFO $170 million (comparable to prior year after capital recycling; North American gas storage operations driving growth). Data: FFO $68 million (comparable to prior year; benefits from acquisitions offset by sale of New Zealand business).

• Target $2B annual capital recycling; expect data and decarbonization segments to grow disproportionately with 80% of backlog in these areas.
• Anticipate some debt optimization opportunities remaining, especially for 2025 and 2026 maturities.

• Geopolitical events (Middle East) impacting shipping routes; potential interest rate volatility affecting capital structure.

Q: Leverage to decarbonization and digitalization in FFO and backlog A: ~30% FFO from data and residential decarbonization; 80% of backlog in these areas.

Q: Credit markets and debt duration opportunities A: Still some opportunities, e.g., Intel project, extending maturities.

Q: Triton performance and synergies A: Utilization over 98%, strong rates; early days on synergies with global shipping business.

Q: M&A selectivity and returns A: Selective, targeting 15%-20% risk-adjusted returns; holding capital for potential opportunities.

Q: HPC and Triton capacity A: HPC facility expected to reach full nameplate by mid-2024; Triton will replenish inventory and adjust based on per diems.